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CSLB outlines implementation plans and effects for several 2025 construction laws

December 29, 2025 | Contractors State License Board, Other State Agencies, Executive, California


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CSLB outlines implementation plans and effects for several 2025 construction laws
The Contractors State License Board received staff reports on implementation and status for multiple bills passed or proposed in 2025.

AB 559: Member Barton summarized AB 559 and noted opposition from ADU manufacturers concerned that home‑improvement down‑payment restrictions could negatively affect off‑site custom builds; the author converted the bill to a two‑year bill to give time to address those concerns. Staff said they met with the Casita Coalition on Nov. 13 and discussed options including payment and performance bonds or a managed fund for ADU products, as well as internal improvements such as better outreach materials.

SB 291: Chief May described the major implementation lift: developing eligibility verification for any workers'‑comp exemption before authorizing it, convening stakeholders, consulting the State Compensation Insurance Fund, the Department of Insurance and DIR/Division of Labor Standards Enforcement for models, and assessing whether to charge application and renewal fees to support audits and compliance.

SB 779 and SB 517: Staff explained the timing and outreach needed to update regulations and industry materials; SB 779 raises minimum civil penalties and increases CSLB's reserve cap, with implementation delayed to July 1, 2026 to align with the fiscal year; SB 517 requires subcontractor disclosure in home‑improvement contracts and clarifies prime contractor responsibility.

Other bills: AB 1002 (wage‑related AG enforcement petitions), AB 1327 (email cancellation and contact details in home‑improvement contracts), and SB 456 (mural exemption) were summarized and staff noted they are preparing procedure and website updates and industry bulletins as appropriate.

Board members asked clarifying questions about contract consequences, timing of cancellation windows, and practical effects on enforcement and civil litigation; staff emphasized that some issues (for example, specific cancellation‑period durations) are not changed by the current statutory language and may require legislative detail.

Staff are not requesting board action on these items today but will continue to provide implementation updates at future meetings.

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